property
Hartford Renters Save $180 Monthly Compared to Homebuyers
Monthly expenses for a typical two-bedroom unit in Hartford now favor renters by roughly $180 after all ownership costs are tallied.
How we reported this
Renting a two-bedroom apartment in Hartford now runs about $180 less per month than the full cost of owning a comparable home, according to calculations that include mortgage payments, taxes and insurance at current rates.
The gap opened after mortgage rates climbed above 6.5 percent early this year and have stayed elevated, while asking rents in the city have risen only modestly since January. Home prices have held steady around recent peaks, so the higher borrowing cost tips the monthly math against buyers even before maintenance bills arrive.
Neighborhood price gaps
The difference shows up clearly along Asylum Avenue in the West End and on Park Street in Frog Hollow. A 1,100-square-foot rental on Asylum Avenue lists for $1,725, while the median sale price for similar row houses there reached $298,000 last month. In Frog Hollow, the same size unit rents for $1,650, yet ownership carrying costs on a $265,000 purchase exceed $1,820 once property taxes at the city’s 2.8 percent mill rate and homeowners insurance are added.
The Hartford Land Bank has listed 14 properties in those two neighborhoods since March, and all but three sold above the $250,000 mark. Local agents note that buyers using the city’s down-payment assistance program still face the same elevated monthly payments once the loan closes.
Greater Hartford Association of Realtors data released June 28 showed the median single-family price at $312,000 through May, up 3 percent from a year earlier. The same report listed the average effective rent for two-bedroom units at $1,680, a 2 percent increase over the prior twelve months. At a 6.75 percent 30-year fixed rate, the principal-and-interest portion alone on a $280,000 loan equals $1,815 before taxes and insurance push the total higher.
Prospective residents weighing the choice can run their own numbers through the Connecticut Housing Finance Authority’s online calculator or schedule a free session with counselors at the Hartford Housing Authority office on Main Street. Those sessions include current rate quotes and local tax estimates updated for the July 1 assessment roll.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.